Education
About Us
Working with TipRanks
Follow Us
Resmed (RMD)
NYSE:RMD
Top Page
Resmed
(NYSE:RMD)80Outperform
Positive Factors
Device Growth
US Device growth at 12% outpaces the CPAP market growth rate of 5-7%, indicating greater new patient engagement at the PCP level.
Market Share
Market share gains are evident, partially aided by Philips’ issues.
Negative Factors
Pharmaceutical Competition
Feedback suggests pharmaceuticals may reduce the number of patients on CPAP, rather than expand.
Resmed (RMD) vs. S&P 500 (SPY)
Market Cap
$34.30B
Dividend Yield0.89%
Average Volume (3M)1.02M
Price to Earnings (P/E)27.6
Beta (1Y)1.27
Revenue Growth9.38%
EPS Growth40.38%
CountryUS
Employees9,980
SectorHealthcare
Sector Strength74
IndustryMedical Equipment & Supplies
Share Statistics
EPS (TTM)8.46
Shares Outstanding146,866,910
10 Day Avg. Volume917,359
30 Day Avg. Volume1,024,158
Financial Highlights & Ratios
PEG Ratio0.68
Price to Book (P/B)N/A
Price to Sales (P/S)6.96
Price to Cash Flow (P/CF)27.80
P/FCF Ratio27.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$273.78Price Target Upside18.27% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
Resmed Business Overview & Revenue Model
Company DescriptionResMed Inc. (RMD) is a global leader in the development, manufacturing, and distribution of innovative solutions for people with sleep apnea, chronic obstructive pulmonary disease (COPD), and other chronic respiratory disorders. The company operates primarily in the healthcare sector, providing cloud-connected devices and healthcare informatics solutions designed to improve patient outcomes and reduce healthcare costs. ResMed's core products include continuous positive airway pressure (CPAP) devices, ventilators, and a range of accessories, along with software solutions that facilitate remote monitoring and management of patients.
How the Company Makes MoneyResMed generates revenue through the sale of its medical devices and related accessories, primarily targeting patients suffering from sleep apnea and other chronic respiratory conditions. A significant portion of its income is derived from its comprehensive range of CPAP machines and masks, which are sold to healthcare providers, distributors, and direct-to-consumer channels. Additionally, ResMed capitalizes on its digital health platform, which offers cloud-connected solutions for monitoring patients remotely, thereby generating recurring revenue through software subscriptions and data services. The company's strategic partnerships with healthcare providers and institutions further bolster its revenue streams by expanding its market reach and ensuring a steady demand for its products and services. Factors such as global aging populations and increasing awareness of sleep-related health issues also contribute significantly to ResMed's financial performance.
Resmed Financial Statement Overview
Summary
Resmed exhibits a strong financial position across all key verticals. The company demonstrates impressive revenue and profit growth, efficient operations, and a robust balance sheet with low leverage. Cash flow generation is strong, further underscoring the company's financial health. While the financials are very positive, continued focus on optimizing asset utilization and maintaining growth momentum will be important for sustaining strong performance.Income Statement
Resmed has demonstrated strong revenue growth with a Revenue Growth Rate of 17.7% from 2023 to 2024. Gross Profit Margin and Net Profit Margin are robust at 57.9% and 25.3% (TTM) respectively, indicating effective cost management and profitability. The EBIT Margin is solid at 31.7% (TTM), and the EBITDA Margin is 33.6% (TTM), reflecting healthy operational efficiency. Overall, the income statement reveals strong performance with impressive growth and profitability metrics.85
Very Positive
Balance Sheet
The company's balance sheet is strong with a Debt-to-Equity Ratio of 0.16 (TTM), indicating low leverage and financial stability. Return on Equity (ROE) stands at 23.8% (TTM), showing effective use of equity to generate profits. The Equity Ratio is high at 73.5% (TTM), suggesting a solid equity base relative to assets. Overall, the balance sheet is in good health, with low debt levels and high shareholder equity, though there are opportunities to optimize asset utilization further.78
Positive
Cash Flow
Resmed's cash flow position is strong, with a Free Cash Flow Growth Rate of 7.9% from the previous period, demonstrating effective cash generation. The Operating Cash Flow to Net Income Ratio of 1.18 (TTM) signifies excellent cash conversion from net income. The Free Cash Flow to Net Income Ratio is also strong at 1.11 (TTM), highlighting the company's ability to generate free cash flow relative to its net income. Overall, the cash flow statement reflects strong cash generation and conversion capabilities, supporting financial flexibility.82
Very Positive
| Breakdown | |||||
| TTM | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 3.58B | 4.69B | 4.22B | 3.58B | 3.20B | 2.96B | Gross Profit |
| 2.02B | 2.66B | 2.36B | 2.02B | 1.84B | 1.72B | EBIT |
| 1.00B | 1.32B | 1.13B | 1.00B | 903.68M | 809.66M | EBITDA |
| 1.19B | 1.53B | 1.36B | 1.18B | 1.10B | 990.43M | Net Income Common Stockholders |
| 779.44M | 1.02B | 897.56M | 779.44M | 474.50M | 621.67M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 238.36M | 238.36M | 227.89M | 273.71M | 295.28M | 463.16M | Total Assets |
| 6.87B | 6.87B | 6.75B | 5.10B | 4.73B | 4.59B | Total Debt |
| 873.93M | 873.93M | 1.58B | 917.55M | 793.72M | 1.30B | Net Debt |
| 635.57M | 635.57M | 1.35B | 643.84M | 498.44M | 836.11M | Total Liabilities |
| 2.01B | 2.01B | 2.62B | 1.74B | 1.84B | 2.09B | Stockholders Equity |
| 4.86B | 4.86B | 4.13B | 3.36B | 2.89B | 2.50B |
| Cash Flow | Free Cash Flow | ||||
| 195.11M | 1.29B | 559.30M | 195.11M | 619.89M | 696.32M | Operating Cash Flow |
| 351.15M | 1.40B | 693.30M | 351.15M | 736.72M | 802.25M | Investing Cash Flow |
| -229.92M | -269.78M | -1.16B | -229.92M | -158.46M | -179.86M | Financing Cash Flow |
| -128.36M | -1.12B | 422.87M | -128.36M | -764.63M | -317.29M |
Resmed Technical Analysis
Negative
231.48
Price Trends
236.55
Negative
239.28
Negative
228.70
Positive
Market Momentum
-2.00
Positive
44.28
Neutral
44.36
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RMD, the sentiment is Negative. The current price of 231.48 is below the 20-day moving average (MA) of 234.89, below the 50-day MA of 236.55, and above the 200-day MA of 228.70, indicating a neutral trend. The MACD of -2.00 indicates Positive momentum. The RSI at 44.28 is Neutral, neither overbought nor oversold. The STOCH value of 44.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RMD.
Resmed Risk Analysis
Resmed disclosed 35 risk factors in its most recent earnings report. Resmed reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Resmed Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $34.30B | 27.59 | 23.77% | 0.89% | 9.38% | 40.38% | |
77 Outperform | $119.32B | 28.28 | 8.63% | 2.96% | 2.72% | 4.48% | |
73 Outperform | $65.60B | 37.95 | 6.85% | 1.70% | 5.89% | 42.05% | |
70 Outperform | $194.88B | 31.23 | 13.15% | 0.30% | 0.05% | 6.87% | |
54 Neutral | $17.66B | 136.07 | -4.48% | 2.64% | -14.00% | -184.82% | |
50 Neutral | $24.54B | ― | -5.85% | ― | -0.76% | -55.03% | |
49 Neutral | $7.05B | 0.34 | -55.09% | 2.46% | 25.27% | -3.43% |
* Healthcare Sector Average
Performance Comparison
RMD
Resmed
231.48
48.85
26.75%
BAX
Baxter International
34.79
-7.08
-16.91%
BDX
Becton Dickinson
224.27
-7.40
-3.19%
PHG
Koninklijke Philips
26.55
6.86
34.84%
MDT
Medtronic
93.03
10.31
12.46%
TMO
Thermo Fisher
516.57
-73.32
-12.43%
Resmed Earnings Call Summary
Earnings Call Date: Jan 30, 2025 | % Change Since: -9.95% | Next Earnings Date: Apr 24, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong financial performance with significant growth in revenue, device sales, and earnings per share. The company highlighted successful product innovations and strategic collaborations. Despite some currency-related revenue impacts and potential tariff concerns, the overall sentiment remains positive with a focus on sustained growth and innovation.Highlights
Strong Revenue Growth
ResMed delivered global revenue growth of 10%, driven by strong market performance across regions, particularly in the U.S., Canada, and Latin America with a 12% increase.
Device and Mask Sales Growth
Device sales increased by 11% globally, with strong demand for AirSense 10 and AirSense 11 platforms. Masks and accessories also saw double-digit global growth.
Gross Margin Expansion
ResMed achieved 230 basis points of margin expansion in non-GAAP gross margin year-over-year to 59.2%, indicating improved operating efficiencies.
Earnings Per Share Increase
Non-GAAP earnings per share increased by 29% year-over-year, reflecting strong financial performance.
Innovation and Product Launches
Launched AirTouch N30i with unique fabric-based patient interface and announced collaboration with Apple for a premium accessory for the Apple Vision Pro.
Strong Performance in Residential Care Software
Residential care software revenue increased by 8%, driven by strong performance from the MEDIFOX DAN software vertical.
Cash Flow and Share Buyback
Cash flow from operations for the quarter was $309 million, with a share buyback program offsetting equity dilution.
Lowlights
Currency Impact
Year-over-year movements in foreign currencies negatively impacted revenue by approximately $2 million during the December quarter, with expected further impact in Q3.
Potential Tariff Concerns
Concerns about potential tariffs affecting competitors, although ResMed does not expect direct impacts due to its manufacturing locations.
Company Guidance
During the Q2 Fiscal Year 2025 earnings call, ResMed provided a robust financial overview, highlighting a 10% global revenue growth and a 29% increase in non-GAAP earnings per share. The company achieved a 230 basis point expansion in gross margins to 59.2%, driven by manufacturing efficiencies and cost improvements. Device sales grew in double digits, with strong performances across the U.S., Europe, and Asia, notably bolstered by the AirSense 10 and AirSense 11 platforms. The masks and accessories business also experienced double-digit growth. ResMed maintained disciplined investments, allocating 6% to 7% of revenues to R&D, contributing to their ongoing product innovation and market leadership. The call underscored the potential impacts of emerging trends such as GLP-1 pharmaceuticals and consumer wearables on patient flow and ResMed's strategic positioning to capitalize on these opportunities over the coming quarters and years.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.